Record-strong solvency and a good operational result in H1.
Mandatum Group’s profit before taxes fell to EUR 109 million (141) in H1 2022. Comprehensive income after taxes, taking into account changes in market values, amounted to EUR −249 million (238). The return on equity (RoE) fell to −31.6 per cent (28.9). Mandatum’s operational result (Mandatum Life’s expense result and Mandatum Asset Management’s result) rose to EUR 22 million (10) and the risk result grew to EUR 16 million (11).
Premiums written on the company’s own account increased to EUR 781 million (703). Premiums written on unit-linked insurance amounted to EUR 717 million (656).
The return on Mandatum Life’s investment assets at fair value was 7.8 per cent (6.8) in January–June 2022, and the return on the segregated portfolio’s investment assets at fair value during the same period was −6.7 per cent (2.4).
Unit-linked and other client assets under Mandatum’s management fell by 8 per cent to EUR 10.3 billion (11.1) at the end of June. Net subscriptions totalled EUR 254 million in the first half of 2022.
The with-profit technical provisions decreased according to plan, and amounted to EUR 3.1 billion (3.2) at the end of June. The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) decreased by EUR 80 million to EUR 1.7 billion (1.7).
Mandatum Life’s solvency ratio rose to 255 per cent from 190 per cent at the end of 2021 and from 216 per cent in March 2022.
Statement by Mandatum Group CEO Petri Niemisvirta:
“In spite of a difficult investment market, the first half of 2022 was successful for Mandatum on a number of fronts. The company’s solvency ratio continued to improve thanks to the dramatic rise in interest rates, among other factors, and our strong solvency position provided the company with an excellent foundation for our operations in an uncertain market environment.
In the first half-year, net subscriptions for customer assets were positive despite the market situation. Fundraising for asset management products succeeded in line with targets.
The sale of risk insurance especially to companies was successful. As an example, Mandatum concluded its largest ever risk insurance deal for the entire Finnish personnel of a major company.
The continued improvement in customer satisfaction during the first half of the year is an indication that we are on the right track in managing customer relationships. Personnel satisfaction has also remained strong. The results of the Siqni personnel survey, conducted at Mandatum for the first time, show that the factors that employees consider the most significant are achieved in the work community. The employees’ net promoter score (eNPS) was 55 in Mandatum’s survey, which is excellent. Mandatum earned the Future Workplaces certificate in the survey for its proven highly rated employee experience,” says Petri Niemisvirta, CEO of Mandatum Group.
Mandatum Group’s key figures 1–6/2022
Premiums written, own account: EUR 781 million (703)
Result before taxes: EUR 109 million (141)
RoE: −31.6% (28.9)
Solvency ratio: 255% (190 12/2021)
Return on investments: −7.8% (6.8) and on the segregated portfolio −6.7% (2.4)
Average number of staff: 626 (563)
Mandatum’s result in its entirety is available at: www.sampo.com/result
Mandatum Holding Ltd’s subsidiaries are Mandatum Life Insurance Company Limited (Mandatum Life) and Mandatum Asset Management Ltd. Mandatum Life offers services in wealth management, rewards and compensation, retirement plans and personal insurance to private and corporate customers. Mandatum Asset Management engages in fund business and provides Sampo Group with discretionary and consultative wealth management and asset management services.
Petri Niemisvirta, CEO, Mandatum Group: firstname.lastname@example.org, tel. +358 10 516 7200
Jukka Kurki, CFO: email@example.com, tel. +358 50 424 6630
Niina Riihelä, Vice President, Marketing and Communications: firstname.lastname@example.org, tel. +358 40 728 1548